GIC aims for international expansion – MD | Insurance business America
Growth beyond the domestic figures is expected from the 2026 financial year
Insurance News
By Kenneth Araullo
Mumbai-based General Insurance Corporation Reinsurance (GIC Re) is actively working to expand its international business as part of a strategy to diversify its revenue streams, said its chairman and managing director Ramaswamy Narayanan.
In an interview with CNBC-TV18, Narayanan revealed that while GIC Re has not focused much on expanding its international portfolio in the past, the company is now looking to consolidate its presence in foreign markets.
“We need to bring our international credit rating to a level where we are able to attract and underwrite the best companies available in this market,” Narayanan said, indicating a strategic shift towards more lucrative and stable global insurance opportunities.
For the current financial year, Narayanan forecast that domestic business would account for about 75% of GIC Re’s total book. However, significant growth in the international sector is expected from the 2026 financial year.
GIC Re’s financial performance for the September to December 2023 period highlighted some challenges, with a 13% year-on-year decline in gross written premiums, an 18% decline in net written premiums and a 10% decline in net earned premiums.
Despite these setbacks, Narayanan remains optimistic about recovery and expects net earned premiums to grow by 10-12% in the current fiscal.
The reinsurer also engages in international markets through government-led roadshows in key financial centers such as New York, Hong Kong, Singapore and Dubai. These efforts have reportedly received positive feedback from investors, potentially strengthening GIC Re’s position in these markets.
On the ownership issue, Narayanan pointed out that the Indian government needs to reduce its stake in GIC Re by a little over 10% to meet minimum public shareholding norms. The timing of this share dilution will depend on the government’s decision-making processes, although a resolution may not be expected until after the elections.
GIC Re has a market capitalization of ₹59,456.62 crore and has seen recent market success with its shares rising 137% in the last year.
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2024-04-12 13:15:00
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